Negotiation advice.

[Dani Montgomery]

We are looking into buying our first investment property. It is listed for $60.3k with an ARV of $108-110k. We are estimating it will need about $20-25k repairs. I'd love to get it for less than $50k. Bank owned. It has been on the market for 4 months now. How would we approach negotiating the amount lower? We do not have a large down payment ready, but we were looking into a 203 loan. Is there a way to approach them that would heighten the chances of an agreement? How have you talked down a bank?

[Simon Shih]

Just to make sure you know this, but a 203K loan is for owner occupied real estate. Are you planning on living in it for a year to season the mortgage? Also, it's really hard to get a mortgage for less than 50K, so be careful what you wish for.